Higher import duty not to impact mega power projects in 12th Plan

NEW DELHI: Commerce and Industry Minister Anand Sharma today said mega power projects, expected to come up during the current Five-Year Plan Period (2012-17), will not be impacted by higher duty on imported gear.

To provide a cushion for domestic manufacturers such as BHEL against cheap imports, especially from China, the government recently decided to levy 21 per cent duty on imported power gear.

The issue of higher import duty on power equipment was discussed at Sharma's meeting today with his Chinese counterpart Chen Deming here today.

Speaking on the issue, Sharma said that all mega power projects coming under the 12th Five-Year Plan have been issued final mega provisional certificates.

"All those that have been given final or provisional mega certificates and all mega power projects where procurement orders have been finalised and placed would continue to have the exemption from the proposed duty structure and would continue to get earlier benefits of the mega power policy," he told reporters.

Sharma said orders for over 44,300 MW have been placed with Chinese power equipment manufacturers.

Earlier, equipment imported for mega power projects -- those having generation capacity of 1,000 MW and above -- were exempted from duty.